Can Hailey Bieber Bring e.l.f. Stock Back to Life?

E.l.f. Beauty (NYSE: ELF) stock has been through the wringer over the past few years, and it's down a whopping 40% over the past year. That's despite robust growth over that time, and a brand that continues to surge and gain market share.

The market has been worried about rising prices and slowing growth, but smart investors can see that e.l.f. has a long, strong future. In tune with that, the company just acquired Rhode, the cosmetics line developed by model and social media star Hailey Bieber. That announcement was made along with e.l.f.'s fourth-quarter earnings report, which beat analyst expectations, and the market gave the company an enthusiastic thumbs-up. Let's see why, and what this acquisition does for e.l.f.

A few highlights from e.l.f.'s fiscal 2025 fourth-quarter (ended March 31) report: Revenue increased 4% year over year to $332.6 million, beating analyst expectations of $326.7 million, and adjusted earnings per share (EPS) were $0.78, above estimates of $0.72. Earnings beats are great, but 4% growth is a massive slowdown for e.l.f., which had been posting high double-digit growth for a long time. A company reporting this kind of growth isn't going to be able to carry a high valuation, so it makes sense that the price has come down in tandem with performance.

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